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Renters Insurance is Worth Every Penny; Here’s Why

In the event of disasters such as fire, smoke, water damage, windstorms, lightning, theft, or vandalism, renters insurance pays for itself.

If you are renting a house, a condo, an apartment, a duplex, or wherever you call home, you should have renters insurance. Even the most innocuous incident can turn into a disaster that can leave you scrambling for resources.

Imagine this real-life scenario: A small grease fire in the kitchen activates the sprinklers in the ceiling. The fire causes insignificant damage. The sprinklers, however, damage everything in the home.

The mattress and sofa are soaked through; the computer and TV are waterlogged; all books, documents, and photos are wet and wasted. This results in a significant loss of possessions — and, in turn, money.

A candle left unattended, an iron left heating, and a leaking bathtub can also lead to disaster. Incidents like these highlight the importance of renters insurance. Even if you never have to use it, the low-cost insurance — about one takeout meal a month — is worth every penny for peace of mind.

Renters insurance is not just for covering your valuable items; it’s also for replacing every single item you own and finding temporary housing while you’re at it.

Renters insurance is inexpensive. According to Independent Insurance Agents and Brokers of America, the average cost of renters insurance is a mere $12 per month for $30,000 of property coverage and $100,000 of liability coverage.

Renters insurance has two parts: property coverage and personal coverage. Property coverage protects items of value. Personal liability protects you when things go terribly wrong, such as if a guest slips down your stairs or if your sink overflows into a downstairs apartment.

Renters insurance is a good idea if you wish to protect yourself and your belongings. If you’re on the fence, ask yourself these questions:

  • Can you afford to set up a new home?
  • Can you afford to stay in a hotel if you’re unable to live in your apartment?
  • Do you have expensive items you couldn’t afford to replace if stolen?
  • If a visitor is injured, can you cover their medical expenses?

To get started, contact your auto insurance company to see if you can bundle renters insurance into your policy. Shop around and research the policies that local insurance companies offer. (Check out our insurance guide to find an agent.)

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